What is Money?

Anything used as money should be:

Durable Portable Divisible Scarce Accepted Stable in Value

What is money?

Money is anything that can be used as a medium of exchange, as a measure of value or as a store of value

Why is money valuable?

Money is only valuable because we know others will accept it as payment

Representative Money

backed by or exchangeable for gold or silver

Store of value

can store purchasing power for later use

Currency

coins and paper money

Measure of value

compare the value of goods and services

Barter

exchanging goods/services for other goods/services; used before money was developed

Commodity Money

has value as a good aside from its value as money (gems, cattle, etc)

Fiat Money

has value only because a government order has established it as acceptable for payment of debts (legal tender)

Medium of exchange

traded for goods and services